GNSA blogshttp://www.gnsadmin.com/blog
enLast minute FSA changes! How do they impact YOU?http://www.gnsadmin.com/blog/FSA
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<img src="http://www.gnsadmin.com/sites/default/files/styles/large/public/money_0.jpg?itok=atFYPum8" alt="2013 FSA Changes" title="IRS Changes Health FSA "Use-Or-Lose" Rule"/>
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<div class="field-type-image-title">IRS Changes Health FSA "Use-Or-Lose" Rule</div>
<div class="field-type-image-caption">2013 FSA Changes</div>
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<div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>On October 31st, the IRS modified cafeteria plan "use-it-or-lose-it" rules so that $500 may be carried over from one year to the next in FSA accounts. Under Notice <a href=" http://www.irs.gov/pub/irs-drop/n-13-71.pdf" target="_blank">2013-71</a>, these plans may now be modified so that up to $500 can be carried over to defray qualifying medical costs in the next year. The much hated rule change was a result of sharp criticism of the "use-it-or-lose-it" requirement, and concerns that participants were undergoing unnecessary medical procedures at the end of the year to avoid forfeiting account balances.</p>
<p>But the IRS gift comes at a price. Cafeteria plans that wish to take advantage of the new rule may not use a "grace period," which has been a popular feature in many FSAs, allowing participants to use prior year account balances to pay for expenses incurred in a following year during the first two and one-half months of that year.</p>
<p><strong>Written Plan Amendment Required.</strong></p>
<p>To take advantage of the new rule, plans must be amended in writing. A special transition rule allows an amendment to be made in 2014, effective as of the beginning of a plan year beginning in 2013. And, if a plan contains a grace-period provision and wants to allow the carryover, the grace-period must be amended out of the plan at the same time. The IRS warned that such retroactive amendments were allowable, but that other laws might be problematic.</p>
<p><strong>Prior Run-Out Rules Still Effective.</strong></p>
<p>The IRS was careful to point out that even though grace periods cannot be used in conjunction with the new rule, "run-out" periods are still allowed. A "run-out" provision allows a participant to use funds from a prior year during the first few months of the next year, but only to defray qualifying expenses incurred in the prior year. By contrast, "grace periods" allow funds from a prior year to be applied against expenses incurred in the first few months of the next year.</p>
<p><strong>Contribution Limits Not Affected.</strong></p>
<p>Health reform ushered in a new $2,500 limitation on healthcare flexible spending accounts effective in 2013. The IRS noted that this $2,500 limit is not affected by the new rules. In other words, a participant can carryover up to $500 and still elect the full $2,500 deferral in a following year.</p>
<p>For additional information see the US Treasury Department's <a href="http://www.treasury.gov/press-center/press-releases/Documents/103113FSA%20Fact%20Sheet.pdf" target="_blank">Fact Sheet</a></p>
</div></div></div>Sat, 09 Nov 2013 00:56:10 +0000rweighter47 at http://www.gnsadmin.comAffordable Care Act Updatehttp://www.gnsadmin.com/blog/affordable-care-act-update
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<img src="http://www.gnsadmin.com/sites/default/files/styles/large/public/aca_0.jpg?itok=TIXL0VSw" alt="Affordable Care Act" title="Affordable Care Act"/>
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<div class="field-type-image-title">Affordable Care Act</div>
<div class="field-type-image-caption">Affordable Care Act</div>
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<div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>Two days after we released our last update, the Federal Government posted on the Department of Labor website that although employers are required to provide the model exchange notice to employees, there will be no fine or penalty for failing to provide the notice.<br />
We don’t believe that these kinds of notice requirements and no fault (no penalty) actions for failing to provide the notices will last long. The vast majority of employers and citizens are still unaware of the requirements that befall them under the ACA. It seems likely that the Fed’s just don’t want to exacerbate what will already be a steep learning curve by imposing fines on employers for learning what their new responsibilities entail under the ACA. </p>
<p>Employers are definitely better represented in Congress at the moment than the average citizen. The Employer Mandate has been postponed one year while the individual mandate still requires each U.S citizen to acquire coverage or face a first year penalty of $95 or 1% of their household income. As the rates for individual coverage available within the exchange are now becoming known, many in the twenty something crowd are in for a bit of sticker shock as premiums can be 5-6 times what individual coverage was outside of the exchange just a year ago. Insurance industry insiders believe it likely that those in the healthy, no pre-existing condition, twenty-something crowd will continue to opt out of coverage rather than pay the much higher insurance premiums for something they believe they will not need.</p>
<p>There is a name for what happens to insurance where only those that need it sign-up for it. It’s called a “Death Spiral”. Health plans in a Death Spiral raise premiums quickly because a higher proportion of unhealthy people sign-up for insurance while the healthy population opts out of coverage. In spite of where you land on the topic of wanting healthcare reform to succeed or fail, some forecasters give the ACA 18-24 months before the rising costs of healthcare require a major reconsideration of reform methodology.</p>
</div></div></div>Mon, 28 Oct 2013 01:30:30 +0000rweighter34 at http://www.gnsadmin.comNew Oregon Laws for 2014http://www.gnsadmin.com/blog/new-oregon-laws-2014
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<div class="field-type-image-title">Oregon Law Changes for 2014</div>
<div class="field-type-image-caption">2014 Amends to Oregon Laws</div>
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<div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p><strong>Minimum Wage</strong>: Oregon’s Bureau of Labor and Industries (BOLI) announced that effective January 1, 2014, Oregon’s minimum wage will rise from $8.95 to $9.10 per hour. All Oregon employers (other than federal government workers) must post an accurate minimum wage poster, and must display the poster in a conspicuous location as of January 1st 2014. The 2014 poster is now available free of charge on BOLI’s website.</p>
<p><strong>Veterans Day Off Policy</strong>: Employers in Oregon must give employees who are veterans time off for Veterans Day under Senate Bill 1, signed into law by Gov. John Kitzhaber on April 4, 2013. Below is a sample policy that you may want to use to inform your employees of this new law.</p>
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<p><strong>OREGON VETERANS DAY POLICY</strong></p>
<p>The Company will provide paid or unpaid time off for Veterans Day if the employee would otherwise be required to work on that day and the employee provides (a) at least three weeks’ notice that he or she intends to take time off for Veterans Day and (b) documents showing that he or she is a veteran as defined by Oregon statute.</p>
<p>To take leave under the law, the veteran must have served on active duty in the armed forces for at least six months and received an honorable discharge. If the individual served in a reserve or National Guard unit, the employee is not qualified for leave unless he or she was deployed or served on active duty for at least six months.</p>
<p>The Company will notify the employee, at least 14 days before Veterans Day, whether he or she will receive time off for Veterans Day and whether the time off will be paid or unpaid. If the Company determines that providing time off on this holiday would cause significant economic or operational disruption or undue hardship, the employer is not required to comply with the law. </p>
<p>If a veteran does not receive time off on Veterans Day, the Company will allow the worker, with approval, to take a single day off within one year of that holiday in order to honor the employee’s military service.</p>
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<p><strong>Portland’s New Sick Time Policy</strong>: If you are an employer residing in, or doing business within, the city limits of Portland on January 1st 2014, you will be subject to Portland’s new sick leave rules. The new rules require all employers working or residing within the Portland city limits to provide employees with 1 hour of sick time for every 30 hours worked. Employers with six or more employees will be required to pay for the sick leave and those with less than six employees must at least provide the sick leave unpaid.<br />
Sick Leave can be used for any of the following:<br />
1.) Employee or employee’s family mental or physical illness;<br />
2.) To seek legal or law enforcement assistance that ensure health and safety of the employee or employee’s minor child;<br />
3.) Medical treatment for, or to recover from, injuries caused by domestic violence, sexual assault, or stalking;<br />
4.) To obtain counseling for #3;<br />
5.) To obtain services from a victim services provider;<br />
6.) To relocate or to take steps to secure an existing home to ensure the health and safety of the employee or the employee’s minor child or dependent;<br />
7.) Closure of Employee’s place of work, or the school or place of care of the Employee’s child due to official public health emergencies; care for Family Member deemed to be a hazard to the public by a lawful public health authority; or any law or regulations requiring the Employer to exclude the Employee from the workplace for health reasons.</p>
<p>There are still numerous other provisions that an Employer needs to consider when drafting their Sick Leave policy and Employers would be wise to review their existing sick leave policy for compliance or create a new policy if needed. Contact your GNSA Customer Service Team if you need a referral to an HR consultant that can assist you with a new Sick Leave or Veterans Day policy.</p>
</div></div></div>Mon, 28 Oct 2013 01:28:47 +0000rweighter33 at http://www.gnsadmin.comGNSA's Bloghttp://www.gnsadmin.com/blog/gnsas-blog
<div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"><p>Welcome to GNSA's blog where you can find the most up-to-date information on the topics that are important to you as an Employer--from minimum wage updates to breaking news from the White House--GNSA will keep you informed!</p>
<p>Chris Marquette<br />
GNSA, LLC</p>
<p><em>This blog is intended for general information only and not as legal advice.</em></p>
<p><em>You should not rely on the information for any legal purpose, and contact your attorney to determine applicability to your situation. GNSA disclaims all liability in respect to actions taken or not taken based on any contents of this newsletter.</em></p>
</div></div></div>Mon, 21 Oct 2013 07:33:21 +0000rweighter13 at http://www.gnsadmin.com